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PEAPOD HALTS FREE DELIVERY

CHICAGO -- Internet grocer Peapod here, a subsidiary of Ahold, Zaandam, Netherlands, announced last week that it will discontinue free grocery delivery in Boston and the Chicagoland markets.uted a $4.95 minimum delivery fee for all orders in the Boston area made on or after Aug. 31. Orders under $75 will contain a $9.95 fee.In Chicago, its most profitable market, the Internet grocer is capping all

CHICAGO -- Internet grocer Peapod here, a subsidiary of Ahold, Zaandam, Netherlands, announced last week that it will discontinue free grocery delivery in Boston and the Chicagoland markets.

uted a $4.95 minimum delivery fee for all orders in the Boston area made on or after Aug. 31. Orders under $75 will contain a $9.95 fee.

In Chicago, its most profitable market, the Internet grocer is capping all orders with a $2.95 fee.

The company has already started charging for all deliveries in Washington D.C., Connecticut and Long Island, N.Y., in efforts to boost profitability.

The company also settled a lawsuit filed by a shareholder claiming that parent company Ahold's buyout price of $2.15 for the 42% stake in the company that it does not own was unfair.